6 Steps to Opening a Business Bank Account (with Checklist)
Opening a business bank account can be one of the most complicated and stressful parts of opening your business. From understanding basic financial statements to knowing how to choose the right type of account, there are plenty of things to consider when getting started. To help you out, we’ve compiled this step-by-step guide on how to open a business bank account in 6 easy steps along with an extensive checklist that you can download and use during the process so you don’t miss anything.
Step 1: Know your start-up expenses
An important part of opening your business bank account is determining your start-up expenses. Knowing how much money you will need will help you determine how much money you’ll need in your account.
Some initial expenses that you may incur are legal fees, advertising fees, licenses and permits, inventory costs, equipment purchases, and any costs associated with the home office. You also want to make sure that these items are included in your monthly budget as well.
Step 2: Gather your bank account forms
A bank account is one of the most important considerations when opening your own business. A well-thought-out plan can save you headaches later, so be sure to ask your business lawyer for any pre-purchase advice. You’ll need a total of four documents
Step 3: Decide on the best business bank account for you
You have many decisions to make when it comes to your bank accounts, such as checking and savings accounts, line of credit, credit card or merchant services, and debit card. You will also need an electronic banking program such as Quicken or QuickBooks in order to easily transfer money between your accounts and track business expenses. And don’t forget that you may also need equipment such as iPads, iPhones or ATMs, depending on how much business you’re conducting on the go.
Explore these questions as they pertain to your specific need
Step 4: Head to your nearest bank branch
Find the nearest branch, and speak with a teller. The best way to find your nearest branch is by looking in the phone book. To save time, you can also stop in at your local library and ask for their business section.
Step 5: Complete the application form at the bank branch
- Complete the application form at the bank branch: When you arrive at the bank, they will provide you with an application form that should include your company’s name, company address, company’s principal business activity, number of owners, capital amount, and date of incorporation. Your contact person and one of your owners need to be present when completing this application form so you can sign it in front of the bank representative.
Step 6: Wait for confirmation from your chosen bank
You’ll be notified by email when your account is ready for you to log in and use. You may also get a text message or phone call depending on the notification preferences you’ve chosen.
- Look for an email from the bank with the subject Welcome! It’s time to start banking.
- If you don’t see an email, look in your inbox and click on it when you do find it.
- Enter your username, which is typically your full name, and then create a password that is not easy to guess but memorable enough so that you can remember it – they recommend using upper-case letters, numbers, and symbols combined with capital letters where possible.